Kuwait faces shortage of warehouses 

InternationalKuwait faces shortage of warehouses By Web Desk-Apr 18, 2026KUWAIT: The warehousing sector in Kuwait is under mounting pressure due to a significant shortage of storage space, according to real estate experts, who expressed concern that the imbalance is driving up costs and exposing broader risks to the economy. Real estate specialist Fahad Al-Momen said Kuwait’s total storage capacity currently stands at around 21 square kilometers a figure he described as insufficient to meet growing demand. The shortfall has contributed to a sharp rise in both land values and rental rates for warehouses. He noted that prices for storage plots and rents have doubled in some areas, particularly in Ardiya, since the Covid-19 pandemic. Rental values have also witnessed a significant increase, especially after the Mangat fire and the subsequent tightening of restrictions on storage in unlicensed locations, such as some investment properties. Al-Momen said recent Cabinet decisions to identify unused land could help ease the crisis, but added that the market is still waiting for concrete implementation. Expanding designated storage areas, he argued, would help reduce costs, stabilise commodity prices and strengthen Kuwait’s strategic reserves, particularly during emergencies. He also called for practical measures, including offering new storage sites for investment under a usufruct system, similar to what is implemented in Mina Abdullah, in addition to reorganizing and utilizing existing storage areas. Regarding the proliferation of unlicensed warehouses, Al-Momen warned of their negative impact on the market, noting that they create unfair competition between those adhering to official safety and security requirements and those operating outside the legal framework. He stressed that the unlicensed warehouses are able to lower their prices due to reduced costs, which harms legitimate businesses. Al-Momen said unregulated sites have been linked to past fires that resulted in...